iDempiere ERP Modern, Scalable, Adaptable & Affordable Open Source ERP Solution for Enterprise

By Deptha Bagus Oc Current – Managing Director - Andromedia SAP Deployment Lead – Cargill APAC Quick Intro CEO – Avolut Global Indonesia · 2011 – 2016 About Me – Design SAP for Cargill Worldwide Instance – Deploy SAP over 10 company and 245 location in Asia Pacific region

Attend BPM, ITSM, TGRC & PPM Course - – Implement iDempiere over 20 company with · various business model in Indonesia 2011 2010 – Entitle for EC Council Project Manager Founded Avolut Global · IT Manager for Sorini Agro Group Infor SyteLine Consulant with Sorini - 2009 · 2008 – Lead SAP B1 implementation with Join Andromedia – 2008 Soltius in Nigeria, Philipones & France Started Team for SME project · · 2007 – Entitle for SAP Project Manager Functional SAP Consultant MM, PP, WM – · 7 completed project in 2 years 2006 2005 – Graduated from SI ITS Oracle OCP training & certification · – Join ABAP developer for Wings Started as Road Warior Programmer - 2003 · Group 2001 – Registered as SI ITS student Introduction A Glance on ERP 20 min Selecting ERP Products 20 min Open Source ERP 10 min Q&A 15 min iDempiere ERP in a Glance What is iDempiere ERP 30 min Functional Introduction 10 min Configurability & Extendability 15 min Features & Functional Overview 30 min Success Story 30 min Q&A 15 min A Glance About ERP and How to Select ERP’s • Facilitates Company-wide What Is ERP? integrated Information Systems Covering all functional Areas Software solution that addresses all and processes. the needs of an enterprise with the • Performs core Corporate process view of an organization to activities and increases meet the organizational goals and customer service augmenting integrate all the functions of the Corporate Image. enterprise • Organizes & Optimizes the data input methodologies systematically ERP Evolution

Inventory, MRP, ERP Cloud Production, Project, Accounting, CRM, HRM, ERP etc.

BEFORE 1990s 2000s NOW 1980s Typical ERP Coverage SINGLE SYSTEM TO STREAMLINE YOUR ENTIRE BUSINESS

Integrate All Critical Business Functions

Manage your entire business end-to- end across sales, project, customers, purchasing, inventory, production, operations, financials and HR functions, all in a single system

Eliminate Barriers & Proactively Focus on What’s Redundancies Important

Information captured is instantly Workflow-based alerts to monitor, accessible in the entire system, notify and trigger auto-responses eliminating redundant data entries when important business events and errors in different systems occur Small, Medium & Large Accounting vs Software ERP • Harder to setup, BUT • Easy setup Integrated Solution • Point solution • Shared documents • Document created every • Always real time information department • Good for Strategic Planning • Delayed information - Sales Cycles

SALES STORE / SHIPMENT FINANCE ACCOUNTING ERP Software - Sales Cycles

SALES STORE / SHIPMENT FINANCE ACCOUNTING Selecting ERP Products Why Business need ERP ?

They need to • Reduce Cost • Manage Grow Expectation • Eliminate Delay in Decision Making due to lack of timely information • Improve customer response time • Be easier to do business with Priority, Why We Spend Money

Maturity Class Benefit 1. Drive • 61% improvement in inventory turns Revenue Best in Class : Top • 24% reduction operating cost 2. Reduce 20% of aggregate • 23% reduction in administrating cost performance scorers • 23% improvement in complete and on-time delivery Operating • 18% reduction in inventory Expense • 61% improvement in inventory turns Industry Average : Mid • 16% reduction operating cost 3. That’s It 50% of aggregate • 15% reduction in administrating cost performance scorers • 15% improvement in complete and on-time delivery • 11% reduction in inventory • 16% improvement in inventory turns Laggard: Bottom 30% • 8% reduction operating cost of aggregate • 10% reduction in administrating cost performance scorers • 9% improvement in complete and on-time delivery • 9% reduction in inventory Source : Abeerden Group Small, Medium & Large Cost of The Software

• Capital Expenditure or Operating Expense? • On-premise or Hosted? • Concurrent User, Named Licensing or Free? • 3rd Party Licensing • Annual Maintenance & Support • Modules ERP Implementation The Conference Board Survey* Interviewed executive 117 companies that use ERP • 34% were very “satisfied” • 58% were “somewhat satisfied” • 40% of the ERP project failed! www.it-crtex.com/Stat_Failure Interviewed executive 117 companies that use ERP ERP is 80% Implementation and 20% Software Selecting ERP

• Drive revenue, reduce operating expense • The project pays for itself • “Fit” First, “How Much” second • “Must Have” functional requirement list • Evaluation and Selection process task list and timetable • Don’t “lowball” the implementation Open Source ERP An alternative for ERP Solution • Describe an ERP system • Discuss benefit of using Open Source ERP versus Commercial ERP • Knowing iDempiere Why adopt Open Source ERP ? Enterprise Resource Planning • SAP/Oracle too Expensive • OpenSource ERP is now Mature • Freedom you gain from License, Lock-in, Customize, etc. Full Of Freedom

OPEN SOURCE PROPERTIARY

+ • Full Total Cost Ownership + • Usually quick to setup as • Global Community Support it repeat model • Full Freedom • Product Stability • Full Access until source code level • Legal vendor register as • Avoid Vendor Lock In global support

• Generalized Support • Lock Down & Tied In - • Business risk if no good - • Limited Flexibility resources to support • Costly in the long run • Vendor Dependency Cost Advantage of Open Source ERP

Project Support Continuos Cost Cost Improvement

Cost Element Open Source Propietary User License Free IDR 20 to 60 mio / user OS License Free IDR 80 to 150 mio Free IDR 400 to 700 mio Implement Consulting IDR 300 to 1.000 mio IDR 700 to 20.000 mio Server IDR 10 to 20 mio IDR 20 to 100 mio Renewal User License Free IDR 4 – 12 mio / user iDempiere ERP Modern, Scalable, Adaptable & Affordable Open Source ERP Solution for Enterprise iDempiere is Enterprise Resource Planning or ERP software released under an open source software license. The software is licensed under the GNU General Public License. • Open source ERP and CRM What is business solution. • Ranked #1 on iDempiere ERP? .net and won multiple awards • Deployment – Browser / Server – Desktop Client / Server • Model Driven Architecture • A robust platform iDempiere Around The World

Europe 105 Company 25 Consulting Partner North America: 33 Company 6 Consulting Partner Asia 103 Company 23 Consulting Partner Africa 23 Company 8 Consulting Partner

Latin America: 100 Company 17 Consulting Partner Australia & NZ 25 Company 1 Consulting Partner Full Functional ERP Lower Total Cost of Ownership iDempiere is Full function ERP. No license, no module fee, no use iDempiere is very flexible and fee. All you need to Invest is scalable. It will fit your needs as your consultant fee, including growth without adding extra modules implementation, cotimization and or replacing with other one training. No any other cost, which usually cost server thousand dollars per user for commercial license ERP Higher Successful Rate iDempiere Has Full of Implementation Freedom iDempiere designed an internal application Since ADempiere is open source and using dictionary. end User can use it to customize the mainstream J2EE technology. You can menu, window, and tab. With ad 80% of either change it by yourself or easily find customization work can be done without technical guys from market to do it. You have coding. Its super flexibility really makes it full freedom after implementation iDempiere possible to satisfy any business changes DOCUMENT BUSINESS MANAGEMENT INTELLIGENT TOOLS SHARE POINT PENTAHO ALFRESCO POWER BI

PLANT SYSTEM FULL INTEGRATED FUNCTIONAL ERP OTHER ERP PI SYSTEM WEIGHT BRIDGE FINANCIAL MANAGEMENT WEB SERVICES & API SALES FORCE PROCUREMENT SALES APPS MESSAGING INVENTORY MANAGEMENT SMS GATEWAY MIDDLEWARE ETC PROJECT MANAGEMENT ETC SUPPLY CHAIN MANAGEMENT ADD ONS POS & MANUFACTURING MOBILE APPS FIXED ASSET (POZA) HRM PLANTATION Lower Total Cost Of Ownership

LARGE ENTERPRISE My SAP ERP Oracle EBS, PeopleSoft SAP All , JDE E1 Laws MID Infor in One on MARKET Microsoft SAP by Dynamics Epico Design r IDEMPIERE SAP Sage Net B1 SMALL Grp Suite BUSINESS

$ HIGH THOUSANDS / USER $ LOW HUNDRED / USER

COST OF SOLUTION Organization Structure Holding-Business Unit Model

Client Level Holding

Construction Transportation Trading Firm Organization Level Firm Firm

Building Road Build Trucking West Area Sub-Organization Level Division Division Division

• Multi level Organization • Consolidate-able • Standardize-able • Centrally managed under single server • 9 element account available for reporting purpose • Intercompany transaction traceability Flexibility User Interface

Flexibility is the key in current age, no big server, expensive corporate WAN or even personal computer to operate.

iDempiere provide rich interface in both client server desktop application and web-interface as well and even mobile interface recently Enterprise Grade ERP System Integration to Jasper Report 100% Open Source Technology Stack A Robust Platform • Active Data Dictionary – Reduce coding work by 80% in ERP customization. • Define Data Entity – Type, Validation • Define display – Windows , Tabs – Field / Report • Define security and access rules Open and Extensible Architecture

Mind-Blowing Rapid Development for fast moving Businesses Problems With Traditional ERP • Complex – Bloated with features you’ll never use – Complicated and time consuming to implement • Inflexible – Force you to modify your business to match the software – Difficult to change once implemented – Many local solutions won’t scale globally • Expensive – Costly licenses, IT infrastructure, maintenance and upgrades • Proprietary, Locked-in – Don’t control your own destiny

Traditional ERP may not be a cost effective iDempiere’s Fresh Approach • Adapts to the way YOU do business – Setup and re-configure the system without programming – Quickly adapt to business change – change anything, anytime • Available at fraction of the cost of any competing solution – Leverage the disruptive economics of open source – No up-front software license fees • Backed by the reliability of a commercial corporation – Experienced leadership – Consistent processes for product innovation, quality and support – Resources for flexible licensing, sponsored development and more FUNCTIONAL INTRODUCTION INTEGRATED ERP AND CRM GLOBAL-READY FEATURES

• Fully internationalized – Localizations isolated from code – Partners deliver translated and localized iDempiere solutions in over 16 languages e.g. (shown)

• Out-of-the-box, support for multiple: – Business units – Accounting standards – Tax laws – Currencies CONFIGURABILITY & EXTENDABILITY Technical Architecture

User in Cloud Server Location A

Firewall Router & User in Firewall Backup Device Database Server iDempiere Server VPN Server Location B PostgreSQL With Build Security with Build Security

User in Location C Configuring & Extending iDempiere

• Configure Business Rules Extend Adempiere – Application setups Applications – Workflow & security • Add new fields (DB columns) – Accounting Dimensions • Add new entities (DB tables) – Change setups at any time • Add data validation & defaults • Configure User Interface • Add new workflows – Field, windows, labels • Change security rules – Layout, theme, language • Add performance measures – Search fields • Link to external systems • Configure Reports • Callout to java processes & – Dynamically create reports – Format reports w/ Adempiere • integrate results back into UI or 3rd … without programming – party report designer Customization Without Programming

Add New Add Fields Windows

Change Field Dynamically Name Hide Fields

Change Per User Window Default Value Layout

Set Security at row/field level

Easy & manageable customizations through the Applications Dictionary include: iDempiere as an Application for Framework

“iDempiere is well known for its Powerful Application Dictionary Framework” Planning & Configuration

Coding

This is a Big topic that require time to study, yet “Worth It!” Application Dictionary Framework Application Dictionary Framework (Cont)

• Interface Layer Pure Application Dictionary Pure Configuration

Note: Tab = Table, Field = Column • Process Callout Layer Partly managed by Application Dictionary Configuration + Coding Java Code or Light Weight Script • Document / Data Model Layer Object Model Pure Java Coding Base infrastructure of the system Application Dictionary Development Scenario Types of Reports Output Forms Standalone Reports Financial Reports

“They generally have two • Financial Reports are unique dimensional information” • Sample of Reports are – Balance Sheets – Profit and Loss Statements “These dimensions are – Statements of Account mapped into columns and – Etc. lines (or rows)” • ADempiere Tools – Report Line Set – Report Column Set – Reporting Hierarchy – Financial Report FEATURES & FUNCTIONAL OVERVIEW iDempiere Product Coverage Sales & Distribution Inventory Manufacturing Human Resources • Customer Management • Product Management • Bill of Material • Recruitment • Marketing & Campaign • Multi-Warehouse & • Resource & Rate • Personal • Pricing & Discount Location • Production Routing Administration • Sales Order Management • Batch Mangement • Quality Parameters • Management • Shipping & Transportation • Serial Number & Organization • Commission and Incentive Attribute • Forecasting • Payroll • Return Management • MRP Engine • Attendance & Leave • Inventory Receipt to • Production Plan & • Personal Procurement Stock Order Development • Vendor Management • Inventory Issue from • Production Execution • Travel Management • Auction / RfQ Stock • Quality Inspection • Employee Self • Purchase Order • Inventory Movement Service Processing • Distribution Order • Maintenance Activity • Training • Receive & Quality Check • Inventory Adjustment • Landed Cost • Return Management Project Management Finance & Accounting • Project Type • Asset Project (AUC) • General Ledger • Product Costing • Project & Stages • Cycle Report • Account Receivable • Cost & Profit Center • Project Costing • Financial Status • Account Payable • Tax Management • Receipt & Allocation • Multi-Currency Security & Control Application • Payment Processing • Fixed Asset • Multi Client & Organization • iDempiere ERP • Cash/Bank Statement • Budget & Period with consolidation and • Poza mobile apps Control standardization capability • Order taking • Financial Report • Sub-Ledger Report • Access Role by Form and • Stock Count Organization Data • Workflow Approval • Super User privilege • Graphical Sales & Distribution

High Level Features • Customer Management • Marketing & Campaign • Pricing & Discount • Sales Order Management • Shipping & Transportation • Commission and Incentive • Return Management Procurement

High Level Features • Vendor Management • Auction / RfQ • Purchase Order Processing • Receive & Quality Check • Landed Cost • Return Management High Level Features • Product Management Inventory • Multi-Warehouse & Location • Batch Mangement • Inventory Receipt to Stock • Serial Number & • Inventory Issue from Stock Attribute • Inventory Movement • Distribution Order • Inventory Adjustment Payment Handling

High Level Features • Normal or Advance Payment • Payment Allocation • Reconciliation • Currency Gain & Loss and Revaluation • Integration with Bank System Bill Of Material

Formula for White Base Intermediate

Formula for Formula for Yellow Base Blue Base

BOM for BOM for BOM for Blue BOM for Blue Yellow 55 Gal Yellow 5 Gal 55 Gal Drum 5 Gal Bucket Drum Bucket Planning Management

Material Requirements Planning Manufacturing Execution

WIP PRODUCTS

Raw Materials Order Level 1

Order Level 2

Supporting Materials Order Level 3 Order Level 4 Finish Goods Quality Check Trace Delivery To Shipment Logistic Vs Finance

Logistics contains the sales information

commitment ownership open item bank statement processing Customer

Sales order Goods issue Billing Payment

Material

Goods Accounts receivable Bank Finance contains the financial facts 500 700 ƒ-LC 700 700 C A B

Cost of goods sold Sales revenue

500 - 700 Amount ƒ-LC Accounting & Costing

High Level Features • Multidimensional Account • Multi Product Costing Success Story Project Methodology Not Just A Project, But Deliver Value

Data Service Desk Project Director Anayst Project Manager Functional Technical Technical Cloud Cons. Cons. Support Support Operation Manager Cloud System Master R&D & Business Analyst Engineer Integrator Data Gov.

Implementation Phase Operational Phase • Cloud Infrastructure Services • Business Process Assessment • Day to day operation support • Gap Analysis & Solution Proposal • Bug Fix & Patch Update • Business Process Consulting • New Features and Version Update • System Design & Implementation • Small works services • Training & Documentation • Consulting & Process Improvement iDempiere Success Story

Trading

Manufact Services ERP ure

Plantatio n Success Story

• Company Overview – Indonesia Highway Corporation – Covering all highway with over than 20 branch and 25 sister company • Requirements – Integrated accounting and service management for all 25 affiliate company – Interfaced with SAP as holding ERP System – Business-specific reports and dashboards – Budget control and multi-level accounting segment • Benefits – Improve from 20 financial closing days into only 4 working days – Better control over construction project and budget – Consolidate and standardize reporting – Streamline & standardize process Success Story

• Technology : – ERP Apps : iDempiere ERP – Database : PostgreSQL – Infrastructure : Cloud SAAS SC 3 - MSJ Jasamarga HQ • Project Highlight: – Pilot project with 3 sister company – Roll out for other 22’s company SC 2 - JLJ Toll Branch 2 – Preliminary business readiness held SC 1 - MLJ – Standardized process and data structure – Centralize and Holding business model – Go live in only 4 months Gate’s Toll Branch 1 • Challenges: – Boards and direction changes during project – Many different entities within single project Gate’s Gate’s Success Story

• Company Overview – Fast food franchaise in Indonesia with various tenant – Covering 3 factory food and 10 warehouse in Indonesia • Requirements – Integrated accounting, supply chain and manufacturing system – Equipeed with Point of Sales and barcode scanner – Business-specific reports and dashboards • Benefits – Speed up production operation and customer shipment process – Track and Trace any defect product until the sourcing – Better control over financial and budgets – Streamline & standardize process Success Story

• Technology : – ERP Apps : ADempiere ERP – Database : PostgreSQL – Infrastructure : On-Premise HQ • Project Highlight: Factory MDN – 2 factory with 6 distribution center – Big Bang method – Interfaced with POS system & Barcoding Factory TGR – Food raw material production processing – Go live in 8 months • Challenges: – Heavy number of transaction – Organization changes dynamically – Too many variance over BOM and waste – Low computer skill from end users Success Story

• Company Overview – One of largest sister company of Petrokimia Group – Manufacture of pesticide and fertilizer trading as well – Covering 7 factory and dozens of distributors in Indonesia • Requirements – Integrated accounting, supply chain and manufacturing system – Proper MRP planning to minimize inventory and on-time delivery – Mobile apps for certain mobile activities and management dashboards – Human captital payroll and other activities • Benefits – Minimize inventory, on-time delivery and manufacture “right first time” – Track and Trace any defect product until the sourcing – Better control over financial and budgets – Integration and consolidation over Corporate Group Petrosida Flow

Hands On Initial Client Setup - Example Preparation

• General Company Information (Name, address, phone, fax, NPWP, Email, etc) • Company structure and branch (if any) • Currency use • Chart of Account and segment configuration if any • Bank Account and Petty Cash • Product Costing calculation method • Business Partner (Customer, Vendor, Employee) Example

• Company Name : PT . Maju Sejahtera • Address : Jl. Sejahtera no 1 Surabaya • Phone : 031-3334444 • NPWP : 35.1000.99-001.88 • Director / Contact : Pak Sampurno • Type of Business : Manufacture and Sales Bicycle • Currency : IDR and USD • File CoA : AccountingID.csv • Costing Method : Average PO

Disclaimer : Data above is fictional and if any similar company name as above is truly coincident Example (Continue)

• Bank Account : BNI 46 Pemuda • Account No : 878.888.7777 989.999.8888 Other than bank, PT Maju Sejahtera also use Petty Cash for small payment bellow 500 k IDR

Disclaimer : Data above is fictional and if any similar company name as above is truly coincident Example (Continue)

HQ - Surabaya

Center of Admin & Main Warehouse

Store Surabaya Store Gresik Factory Sidoarjo

Store for Surabaya & Store for Gresik & Manufacturing & Repair nearby Location nearby Location Location Warehouse Surabaya Warehouse Gresik Warehouse Finish Goods Warehouse Raw Mat

Disclaimer : Data above is fictional and if any similar company name as above is truly coincident THANK YOU Bumi Mandiri Tower 2 [Level 12] Jl. Panglima Sudirman Kav. 66 - 68 Surabaya, East Java, Indonesia [email protected] 031-60018666 www.andromedia.co.id andromedia.co.id